Dbl-inc (double increase): Knit into loop below next st, knit into back of next st, knit into loop below next st again.

I keep getting a big leftover loop after finishing the stitch. It looks like I finish the stitch by pulling the yarn thru the stitch below the second time. But then the original loop is left kind of hanging. Is this normal?

Sounds like you're doing it correctly. Tug downwards a little to pull the extra loop from the original "next stitch" down and you'll get rid of the loop. I just tried it and it seems to work. What are you making with this increase?

Hmmm - I tried pulling but there does not seem to be a way to tighten the loop. It's a very neat loop and it is on the back so I guess it does not matter. I can see other increases that would work better and wonder if I can just use one of those.

Oh sure, another double increase should work. This one gives you an eyelet which is nice, though. There should be nothing preventing the stitch in the current row from snugging up with the stitch from the row below but if it's not then another increase may work better. Try them out on a swatch and see which one you think looks best.

I figured it out finally. Tho the instructions don't say it, I knit the two stitches as described and slipped them off the needle. Then I did the last stitch as described. I had been trying to knit that last stitch with the first two still on the needle. Anyway, I am getting that nice little eyelet so I think I am doing something right!